U.S. Retailers Discount Hershey Sweets to Boost Key Halloween Sales

U.S. Retailers Discount Hershey Sweets to Boost Key Halloween Sales

NEW YORK — U.S. retailers are rolling out deeper discounts on Hershey’s chocolates and candies ahead of Halloween, their biggest candy-selling holiday of the year, as consumers push back against higher prices tied to rising cocoa costs and tariffs on imported ingredients.

According to new retail data from NIQ and Circana, average discounts on Hershey products across major supermarket chains and online stores have climbed roughly 18% compared to last year, signaling that both the company and retailers are working to keep seasonal demand strong amid inflation fatigue.

“Hershey’s is facing a squeeze between higher input costs and a consumer who’s simply more price-sensitive,” said Darren Seeger, a retail analyst at Morningstar. “Discounting ahead of Halloween is a way to defend market share in what is still the single most important season for candy sales.”

A Tough Year for Candy Makers

The Hershey Company, the iconic Pennsylvania-based confectioner, has spent much of 2025 grappling with rising costs driven by global cocoa shortages and U.S. tariffs on imported sugar and packaging materials. Cocoa prices have more than doubled since 2023, hitting record highs in London and New York futures markets due to droughts and crop disease in West Africa.

In addition, the Biden administration’s successor policies under the Trump White House have reinstated certain import tariffs on European chocolate products and cocoa-based derivatives, adding further cost pressures.

Those headwinds prompted Hershey to raise prices across several of its best-selling lines, including Reese’s, Kit Kat, Twizzlers, and its signature milk chocolate bars, multiple times over the past two years.

But the company has warned that consumers are beginning to show signs of fatigue. In its latest quarterly earnings report, Hershey reported a 2% decline in North American confectionery sales volume, even as total revenue grew due to higher prices.

Retailers Step In With Discounts

Major retailers including Walmart, Target, and Kroger have responded by marking down Hershey-branded Halloween assortments earlier than usual this year.

At several big-box chains, shoppers can already find “Buy 2, Get 1 Free” offers and bundle deals on variety packs, with some markdowns reaching 25% off on bulk-size bags of mini chocolates.

Online retailers like Amazon and Instacart have followed suit, using coupons and flash sales to capture early holiday shoppers wary of last-minute price hikes.

“Retailers don’t want sticker shock to slow down Halloween,” said Nadia Kim, a market strategist with RetailMetrics. “Discounts are being used strategically, to offset the psychological effect of two years of candy inflation.”

Halloween Still the ‘Super Bowl’ for Candy

Halloween typically accounts for about 10% of Hershey’s annual sales, making it a crucial benchmark for investor confidence. The company has poured millions into marketing campaigns and limited-edition releases to keep customers engaged despite price increases.

This year’s lineup includes special pumpkin-shaped Reese’s cups, spooky Hershey miniatures, and new cookies-and-cream bars with orange creme, all timed to coincide with the fall candy rush.

However, analysts warn that even creative marketing may not be enough to offset the impact of high prices on family budgets. The National Retail Federation estimates that Americans will spend around $11.3 billion on Halloween this year — slightly below 2024’s record — with candy accounting for roughly $3 billion of that total.

“Halloween candy is an emotional purchase, but it’s also a discretionary one,” said Seeger. “Retailers know if consumers start trading down to store brands or smaller bags, it could hit Hershey’s bottom line hard.”

Hershey Eyes Long-Term Fixes

In response to mounting cost pressures, Hershey has been exploring new sourcing agreements and cocoa sustainability programs in Ghana and Côte d’Ivoire aimed at stabilizing supply and improving yields.

The company has also increased automation in U.S. manufacturing facilities to cut costs and improve efficiency. Executives say they are working closely with retailers to